Technology acquisition through convergence: the role of dynamic capabilities

Abstract

In recent cases of industrial dynamics and technological change, the acquisition of technologies is often not based on strategic choice, but can rather be regarded as a required operation in order to tackle risks in emerging phases of consolidation. In particular, the phenomenon of technological convergence is examined as a special case for acquisition of technologies. Introduced by a discussion of drivers for such a convergence, its implications on technology and innovation management practices are investigated. Special focus is laid onto the resulting impact in terms of business model convergence, where creative destruction might lead to severe disruptions in the competitive environment. Based on these reflections, two scenarios for acquisition approaches are introduced. In the first scenario, the convergence causes the current internal competencies to be merged with external ones, resulting in an emerging dominant design, from of which the firm holds a critical resource stake. In the second scenario, the firm's internal competencies remain outside the emerging dominant design. Especially in the latter scenario, the relevance of dynamic capabilities in managerial actions is underlined. The argumentation is illustrated by using the case of telecommunication industry actors in tackling convergence challenges, and in implementing practices for acquisition of technologies and related competencies.